Strong demand extended the decline in zinc social inventories in China

SHANGHAI, Apr 17 (SMM) – Zinc inventories in China fell sharply this week, as demand remained strong.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 13,600 mt in the week ended April 17 to 272,200 mt, marking the fifth straight week of decline. Compared to Monday, the stocks shrank 11,400 mt.

This week’s decline was much larger than a 6,800 mt decline in the previous week, as stocks in Guangdong turned around to trend lower after a major zinc alloy producer in Hunan stepped up purchases from Guangdong and smelters increased direct shipments to downstream consumers.

Stocks in Shanghai and Tianjin continued to fall this week, as orders for galvanised tubes/pipes and structural parts remained robust.

This week, social inventories of refined zinc across Shanghai, Tianjin and Guangdong fell 13,200 mt, after declining 7,200 mt last week.